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'Softer' year ahead as spending and loan growth slow

To the relief of borrowers, the economy appears to be showing signs of softening ahead of the Reserve Bank's first rate decision of the year as growth in spending and home loan values decelerates. The Australian Bureau of Statistics' lending data released on Friday shows the value of new loans has continued to rise, but at a slower rate. NAB economists say this result "plays to the view of financial conditions not being especially restrictive from the perspective of new lending demand". "In terms of flow through to the broader economy, housing momentum if sustained would act to support consumer spending in 2024, adding to notions…

EXCLUSIVE: Melbourne’s Loss, America’s Gain: Rising Costs, Taxes Forces Aussie…

Zee Lalani, a 37-year-old immigrant from Pakistan, sought a better life for his family when he bought a cafe in the humble suburb of Lower Plenty in Melbourne, Australia almost five years ago. Business was going well for the passionate coffee maker—who would often churn anywhere from 500 to 1,000 coffees per day—but the pandemic, lower customer spending, as well as increasing taxes and stringent employee entitlements, have diminished his ambitions to grow and expand. “I love my industry, I love what I do, I enjoy my work, and I love my customers, but the reason I am moving is because there is no way I can find a way to grow,” Mr…

Australian shares struggle to finish week in the green

The local share market was slightly lower this morning after a US inflation readout came in slightly higher than expected, casting doubt on the prospect of quick rate cuts this year. The benchmark S&P/ASX200 index fell by as many as 31.7 points, or 0.4 per cent, at Friday's open but by lunchtime AEDT had recouped most of those losses, 10.2 points lower at 7,495.8, a drop of 0.14 per cent. The broader All Ordinaries had fallen 9.2 points, or 0.12 per cent, to 7,727.6. With a few hours of trading left, the ASX200 was basically flat for the week, up 6.6 points from last Friday's close after alternating between losses and gains each…

Draft laws usher in compulsory climate risk disclosure

Compulsory climate risk reporting will be phased in this year, starting with big companies and financial institutions. Draft laws released by Treasurer Jim Chalmers on Friday requiring companies to disclose climate-related risks change the landscape for Australian investors, banks and corporations by elevating climate reporting to the same level as traditional financial disclosures. The mandatory climate risk disclosure is slated to cover large companies from 2024-25 as the first step in a proposed federal reporting regime that will cover around 20,000 organisations. Dr Chalmers said the "significant reforms" will help Australia…

From housing to energy to food, US inflation picks up, though some costs rise…

Photo: The Canadian Press Megan Cherry sits for a portrait with her two-year-old son in their home in Temple Terrace, Fla., on Tuesday, Jan. 9, 2024. Cherry is among millions of Americans who are feeling the ongoing impacts of inflation, which hit four-decade highs in 2022. (AP Photo/Laura Bargfeld) Higher energy and housing prices boosted overall U.S. inflation in December, a sign that the Federal Reserve's drive to slow inflation to its 2% target will likely remain a bumpy one. Thursday’s report from the Labor Department showed that overall prices rose 0.3% from November and 3.4% from 12 months earlier. Those gains exceeded the…